Coinbase Launches Zero-Fee Trading, But It Has Some Flaws

On May 18, the company announced an upgrade to Coinbase One, a membership account that offers zero trading fees, enhanced rewards, and priority support.

The catch, however, is that users will have to stump up $30 a month for the privilege.

Coinbase has often been criticized for having some of the highest trading fees in the industry. It makes the lion’s share of its profits from these often extortionate fees, so the model clearly works.

Paying a monthly fee to eliminate these charges would only benefit whales and heavy traders. Furthermore, those who trade heavily are unlikely to trade on Coinbase and will favor a decentralized exchange (DEX) where fees are a fraction.

2/ The best of Coinbase just got ✨better✨ Zero trading fees, a dedicated support team, boosting rewards, and exclusive benefits from partners with Coinbase One – all for $29.99/month.

Claim your 30-day free trial →

– Coinbase 🛡️ (@coinbase) May 18, 2023

coinbase one catch

Coinbase is offering a 30-day free trial for its new service, which includes priority support. Apart from its hefty fees, the firm has also been heavily criticized for its lack of customer support.

It appears that Coinbase customers will now have to pay to receive a timely response through support channels. Members will also be able to get support with crypto tax filing couple,

The firm said it is expanding access to Coinbase One in the United Kingdom, Germany and Ireland in addition to the United States.

In addition, the firm is offering perks with partners including Messari, Cointracker and Lemonade.

Coinbase already offers premium accounts and said zero trading fee offer does not apply to Advanced Trading, Coinbase Pro or Coinbase Prime.

Reaction from the crypto community was mixed with the service largely skeptical. “Nebrascangunner” told his 300,000 followers:

“Your support team told me to cancel my membership because the zero trading fee is deceptive and only for trading up to $10,000 a month and you still take advantage of people slipping on basic trading.”

COIN shares fell 1.28% to $60.35 in after-hours trading.

crypto market outlook

The crypto market fell 1.5% on the day, with its total capitalization falling to $1.16 trillion.

Bitcoin fell 2% to $26,782, while Ethereum fell 1.3% to below $1,800.

The markets have remained sideways for the past few months and are still cooling off from the mid-April highs.